Revenue Authority starts targeting Websites for not paying sales tax

Sales tax on websites

The Punjab Revenue Authority (PRA) is in the process of issuing the notices to all the websites that so far have not been registered for paying the sales tax imposed on the online advertisement services. The authority is sending the warnings to all of such sites step-by-step.

The additional commissioner of PRA has reportedly sent the notices to the famous video-sharing websites, DailyMotion, YouTube and a local job searching website – Mustakbil – for not paying the sales tax imposed on the online advertisement services.

A deadline of June 17 is given to these websites for getting registered to pay the tax.

According to the authorities of the PRA, despite earning the heavy amount of money by running the advertising campaigns for different products, these two websites have not paid the sales tax.

16% sales tax on online advertisements

The authorities further stated that the 16% tax on the online advertisement services was imposed in 2014. For taking all the websites into the tax net; the notices are being sent to several sites that are operating in Pakistan.

Earlier, PRA issued similar notices to Google Pakistan and Facebook. According to the officials, these two websites had not paid a single penny in Pakistan since their launch. They are also running online ad services.

It is worth mentioning here that MORE Magazine already predicted a few days ago that the authorities might send notices to the local websites too that are not paying the sales tax.

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